Public Act 101-0321
 
SB1265 EnrolledLRB101 07893 RPS 52948 b

    AN ACT concerning public employee benefits.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Pension Code is amended by changing
Sections 15-107, 15-110, and 15-145 as follows:
 
    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
    Sec. 15-107. Employee.
    (a) "Employee" means any member of the educational,
administrative, secretarial, clerical, mechanical, labor or
other staff of an employer whose employment is permanent and
continuous or who is employed in a position in which services
are expected to be rendered on a continuous basis for at least
4 months or one academic term, whichever is less, who (A)
receives payment for personal services on a warrant issued
pursuant to a payroll voucher certified by an employer and
drawn by the State Comptroller upon the State Treasurer or by
an employer upon trust, federal or other funds, or (B) is on a
leave of absence without pay. Employment which is irregular,
intermittent or temporary shall not be considered continuous
for purposes of this paragraph.
    However, a person is not an "employee" if he or she:
        (1) is a student enrolled in and regularly attending
    classes in a college or university which is an employer,
    and is employed on a temporary basis at less than full
    time;
        (2) is currently receiving a retirement annuity or a
    disability retirement annuity under Section 15-153.2 from
    this System;
        (3) is on a military leave of absence;
        (4) is eligible to participate in the Federal Civil
    Service Retirement System and is currently making
    contributions to that system based upon earnings paid by an
    employer;
        (5) is on leave of absence without pay for more than 60
    days immediately following termination of disability
    benefits under this Article;
        (6) is hired after June 30, 1979 as a public service
    employment program participant under the Federal
    Comprehensive Employment and Training Act and receives
    earnings in whole or in part from funds provided under that
    Act; or
        (7) is employed on or after July 1, 1991 to perform
    services that are excluded by subdivision (a)(7)(f) or
    (a)(19) of Section 210 of the federal Social Security Act
    from the definition of employment given in that Section (42
    U.S.C. 410).
    (b) Any employer may, by filing a written notice with the
board, exclude from the definition of "employee" all persons
employed pursuant to a federally funded contract entered into
after July 1, 1982 with a federal military department in a
program providing training in military courses to federal
military personnel on a military site owned by the United
States Government, if this exclusion is not prohibited by the
federally funded contract or federal laws or rules governing
the administration of the contract.
    (c) Any person appointed by the Governor under the Civil
Administrative Code of Illinois the State is an employee, if he
or she is a participant in this system on the effective date of
the appointment.
    (d) A participant on lay-off status under civil service
rules is considered an employee for not more than 120 days from
the date of the lay-off.
    (e) A participant is considered an employee during (1) the
first 60 days of disability leave, (2) the period, not to
exceed one year, in which his or her eligibility for disability
benefits is being considered by the board or reviewed by the
courts, and (3) the period he or she receives disability
benefits under the provisions of Section 15-152, workers'
compensation or occupational disease benefits, or disability
income under an insurance contract financed wholly or partially
by the employer.
    (f) Absences without pay, other than formal leaves of
absence, of less than 30 calendar days, are not considered as
an interruption of a person's status as an employee. If such
absences during any period of 12 months exceed 30 work days,
the employee status of the person is considered as interrupted
as of the 31st work day.
    (g) A staff member whose employment contract requires
services during an academic term is to be considered an
employee during the summer and other vacation periods, unless
he or she declines an employment contract for the succeeding
academic term or his or her employment status is otherwise
terminated, and he or she receives no earnings during these
periods.
    (h) An individual who was a participating employee employed
in the fire department of the University of Illinois's
Champaign-Urbana campus immediately prior to the elimination
of that fire department and who immediately after the
elimination of that fire department became employed by the fire
department of the City of Urbana or the City of Champaign shall
continue to be considered as an employee for purposes of this
Article for so long as the individual remains employed as a
firefighter by the City of Urbana or the City of Champaign. The
individual shall cease to be considered an employee under this
subsection (h) upon the first termination of the individual's
employment as a firefighter by the City of Urbana or the City
of Champaign.
    (i) An individual who is employed on a full-time basis as
an officer or employee of a statewide teacher organization that
serves System participants or an officer of a national teacher
organization that serves System participants may participate
in the System and shall be deemed an employee, provided that
(1) the individual has previously earned creditable service
under this Article, (2) the individual files with the System an
irrevocable election to become a participant before January 5,
2012 (the effective date of Public Act 97-651) this amendatory
Act of the 97th General Assembly, (3) the individual does not
receive credit for that employment under any other Article of
this Code, and (4) the individual first became a full-time
employee of the teacher organization and becomes a participant
before January 5, 2012 (the effective date of Public Act
97-651) this amendatory Act of the 97th General Assembly. An
employee under this subsection (i) is responsible for paying to
the System both (A) employee contributions based on the actual
compensation received for service with the teacher
organization and (B) employer contributions equal to the normal
costs (as defined in Section 15-155) resulting from that
service; all or any part of these contributions may be paid on
the employee's behalf or picked up for tax purposes (if
authorized under federal law) by the teacher organization.
    A person who is an employee as defined in this subsection
(i) may establish service credit for similar employment prior
to becoming an employee under this subsection by paying to the
System for that employment the contributions specified in this
subsection, plus interest at the effective rate from the date
of service to the date of payment. However, credit shall not be
granted under this subsection for any such prior employment for
which the applicant received credit under any other provision
of this Code, or during which the applicant was on a leave of
absence under Section 15-113.2.
    (j) A person employed by the State Board of Higher
Education in a position with the Illinois Century Network as of
June 30, 2004 shall be considered to be an employee for so long
as he or she remains continuously employed after that date by
the Department of Central Management Services in a position
with the Illinois Century Network, the Bureau of Communication
and Computer Services, or, if applicable, any successor bureau
or the Department of Innovation and Technology and meets the
requirements of subsection (a).
    (k) The Board shall promulgate rules with respect to
determining whether any person is an employee within the
meaning of this Section. In the case of doubt as to whether any
person is an employee within the meaning of this Section or any
rule adopted by the Board, the decision of the Board shall be
final.
(Source: P.A. 99-830, eff. 1-1-17; 99-897, eff. 1-1-17; revised
9-27-18.)
 
    (40 ILCS 5/15-110)  (from Ch. 108 1/2, par. 15-110)
    Sec. 15-110. Basic compensation. "Basic compensation":
Subject to Section 15-111.5, the gross basic rate of salary or
wages payable by an employer, including:
        (1) the value of maintenance, board, living quarters,
    personal laundry, or other allowances furnished in lieu of
    salary which are considered gross income under the federal
    Internal Revenue Code of 1986, as amended;
        (2) the employee contributions required under Section
    15-157;
        (3) the amount paid by any employer to a custodial
    account for investment in regulated investment company
    stocks for the benefit of the employee pursuant to the
    University Employees Custodial Accounts Act;
        (4) the amount of the premium payable by any employer
    to an insurance company or companies on an annuity
    contract, pursuant to the employee's election to accept a
    reduction in earnings or forego an increase in earnings
    under Section 30c of the State Finance Act, or a
    tax-sheltered annuity plan approved by any employer; and
        (5) the amount of any elective deferral to a deferred
    compensation plan established under this Article or
    Article 24 of this Code pursuant to Section 457(b) of the
    federal Internal Revenue Code of 1986, as amended.
    Basic compensation does not include (1) salary or wages for
overtime or other extra service; (2) prospective salary or
wages under a summer teaching contract not yet entered upon;
and (3) overseas differential allowances, quarters allowances,
post allowances, educational allowances and transportation
allowances paid by an employer under a contract with the
federal government or its agencies for services rendered in
other countries. If an employee elects to receive in lieu of
cash salary or wages, fringe benefits which are not taxable
under the federal Internal Revenue Code of 1986, as amended,
the amount of the cash salary or wages which is waived shall be
included in determining basic compensation.
(Source: P.A. 99-897, eff. 1-1-17.)
 
    (40 ILCS 5/15-145)  (from Ch. 108 1/2, par. 15-145)
    Sec. 15-145. Survivors insurance benefits; conditions and
amounts.
    (a) The survivors insurance benefits provided under this
Section shall be payable to the eligible survivors of a Tier 1
member covered under the traditional benefit package upon the
death of (1) a participating employee with at least 1 1/2 years
of service, (2) a participant who terminated employment with at
least 10 years of service, and (3) an annuitant in receipt of a
retirement annuity or disability retirement annuity under this
Article.
    Service under the State Employees' Retirement System of
Illinois, the Teachers' Retirement System of the State of
Illinois and the Public School Teachers' Pension and Retirement
Fund of Chicago shall be considered in determining eligibility
for survivors benefits under this Section.
    If by law, a function of a governmental unit, as defined by
Section 20-107, is transferred in whole or in part to an
employer, and an employee transfers employment from this
governmental unit to such employer within 6 months after the
transfer of this function, the service credits in the
governmental unit's retirement system which have been
validated under Section 20-109 shall be considered in
determining eligibility for survivors benefits under this
Section.
    (b) A surviving spouse of a deceased participant, or of a
deceased annuitant who did not take a refund or additional
annuity consisting of accumulated survivors insurance
contributions or who repaid the refund or additional annuity,
shall receive a survivors annuity of 30% of the final rate of
earnings. Payments shall begin on the day following the
participant's or annuitant's death or the date the surviving
spouse attains age 50, whichever is later, and continue until
the death of the surviving spouse. The annuity shall be payable
to the surviving spouse prior to attainment of age 50 if the
surviving spouse has in his or her care a deceased
participant's or annuitant's dependent unmarried child under
age 18 (under age 22 if a full-time student) who is eligible
for a survivors annuity.
    Remarriage of a surviving spouse prior to attainment of age
55 that occurs before the effective date of this amendatory Act
of the 91st General Assembly shall disqualify him or her for
the receipt of a survivors annuity until July 6, 2000.
    A surviving spouse whose survivors annuity has been
terminated due to remarriage may apply for reinstatement of
that annuity. The reinstated annuity shall begin to accrue on
July 6, 2000, except that if, on July 6, 2000, the annuity is
payable to an eligible surviving child or parent, payment of
the annuity to the surviving spouse shall not be reinstated
until the annuity is no longer payable to any eligible
surviving child or parent. The reinstated annuity shall include
any one-time or annual increases received prior to the date of
termination, as well as any increases that would otherwise have
accrued from the date of termination to the date of
reinstatement. An eligible surviving spouse whose expectation
of receiving a survivors annuity was lost due to remarriage
before attainment of age 50 shall also be entitled to
reinstatement under this subsection, but the resulting
survivors annuity shall not begin to accrue sooner than upon
the surviving spouse's attainment of age 50.
    The changes made to this subsection by this amendatory Act
of the 92nd General Assembly (pertaining to remarriage prior to
age 55 or 50) apply without regard to whether the deceased
participant or annuitant was in service on or after the
effective date of this amendatory Act.
    (c) Each dependent unmarried child under age 18 (under age
22 if a full-time student) of a deceased participant, or of a
deceased annuitant who did not take a refund or additional
annuity consisting of accumulated survivors insurance
contributions or who repaid the refund or additional annuity,
shall receive a survivors annuity equal to the sum of (1) 20%
of the final rate of earnings, and (2) 10% of the final rate of
earnings divided by the number of children entitled to this
benefit. Payments shall begin on the day following the
participant's or annuitant's death and continue until the child
marries, dies, or attains age 18 (age 22 if a full-time
student). If the child is in the care of a surviving spouse who
is eligible for survivors insurance benefits, the child's
benefit shall be paid to the surviving spouse.
    Each unmarried child over age 18 of a deceased participant
or of a deceased annuitant who had a survivor's insurance
beneficiary at the time of his or her retirement, and who was
dependent upon the participant or annuitant by reason of a
physical or mental disability which began prior to the date the
child attained age 18 (age 22 if a full-time student), shall
receive a survivor's annuity equal to the sum of (1) 20% of the
final rate of earnings, and (2) 10% of the final rate of
earnings divided by the number of children entitled to
survivors benefits. Payments shall begin on the day following
the participant's or annuitant's death and continue until the
child marries, dies, or is no longer disabled. If the child is
in the care of a surviving spouse who is eligible for survivors
insurance benefits, the child's benefit may be paid to the
surviving spouse. For the purposes of this Section, disability
means inability to engage in any substantial gainful activity
by reason of any medically determinable physical or mental
impairment that can be expected to result in death or that has
lasted or can be expected to last for a continuous period of at
least one year.
    (d) Each dependent parent of a deceased participant, or of
a deceased annuitant who did not take a refund or additional
annuity consisting of accumulated survivors insurance
contributions or who repaid the refund or additional annuity,
shall receive a survivors annuity equal to the sum of (1) 20%
of final rate of earnings, and (2) 10% of final rate of
earnings divided by the number of parents who qualify for the
benefit. Payments shall begin when the parent reaches age 55 or
the day following the participant's or annuitant's death,
whichever is later, and continue until the parent dies.
Remarriage of a parent prior to attainment of age 55 shall
disqualify the parent for the receipt of a survivors annuity.
    (e) In addition to the survivors annuity provided above,
each survivors insurance beneficiary shall, upon death of the
participant or annuitant, receive a lump sum payment of $1,000
divided by the number of such beneficiaries.
    (f) The changes made in this Section by Public Act 81-712
pertaining to survivors annuities in cases of remarriage prior
to age 55 shall apply to each survivors insurance beneficiary
who remarries after June 30, 1979, regardless of the date that
the participant or annuitant terminated his employment or died.
    The change made to this Section by this amendatory Act of
the 91st General Assembly, pertaining to remarriage prior to
age 55, applies without regard to whether the deceased
participant or annuitant was in service on or after the
effective date of this amendatory Act of the 91st General
Assembly.
    (g) On January 1, 1981, any person who was receiving a
survivors annuity on or before January 1, 1971 shall have the
survivors annuity then being paid increased by 1% for each full
year which has elapsed from the date the annuity began. On
January 1, 1982, any survivor whose annuity began after January
1, 1971, but before January 1, 1981, shall have the survivor's
annuity then being paid increased by 1% for each year which has
elapsed from the date the survivor's annuity began. On January
1, 1987, any survivor who began receiving a survivor's annuity
on or before January 1, 1977, shall have the monthly survivor's
annuity increased by $1 for each full year which has elapsed
since the date the survivor's annuity began.
    (h) If the sum of the lump sum and total monthly survivor
benefits payable under this Section upon the death of a
participant amounts to less than the sum of the death benefits
payable under items (2) and (3) of Section 15-141, the
difference shall be paid in a lump sum to the beneficiary of
the participant who is living on the date that this additional
amount becomes payable.
    (i) If the sum of the lump sum and total monthly survivor
benefits payable under this Section upon the death of an
annuitant receiving a retirement annuity or disability
retirement annuity amounts to less than the death benefit
payable under Section 15-142, the difference shall be paid to
the beneficiary of the annuitant who is living on the date that
this additional amount becomes payable.
    (j) Effective on the later of (1) January 1, 1990, or (2)
the January 1 on or next after the date on which the survivor
annuity begins, if the deceased member died while receiving a
retirement annuity, or in all other cases the January 1 nearest
the first anniversary of the date the survivor annuity payments
begin, every survivors insurance beneficiary shall receive an
increase in his or her monthly survivors annuity of 3%. On each
January 1 after the initial increase, the monthly survivors
annuity shall be increased by 3% of the total survivors annuity
provided under this Article, including previous increases
provided by this subsection. Such increases shall apply to the
survivors insurance beneficiaries of each participant and
annuitant, whether or not the employment status of the
participant or annuitant terminates before the effective date
of this amendatory Act of 1990. This subsection (j) also
applies to persons receiving a survivor annuity under the
portable benefit package.
    (k) If the Internal Revenue Code of 1986, as amended,
requires that the survivors benefits be payable at an age
earlier than that specified in this Section the benefits shall
begin at the earlier age, in which event, the survivor's
beneficiary shall be entitled only to that amount which is
equal to the actuarial equivalent of the benefits provided by
this Section.
    (l) The changes made to this Section and Section 15-131 by
this amendatory Act of 1997, relating to benefits for certain
unmarried children who are full-time students under age 22,
apply without regard to whether the deceased member was in
service on or after the effective date of this amendatory Act
of 1997. These changes do not authorize the repayment of a
refund or a re-election of benefits, and any benefit or
increase in benefits resulting from these changes is not
payable retroactively for any period before the effective date
of this amendatory Act of 1997.
(Source: P.A. 98-92, eff. 7-16-13; 99-682, eff. 7-29-16.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.